The
event that would lead to the outbreak of World War 1 a month later, occurred on
this day. Gavrilo Princip, a Serb nationalist, assassinated Austrian archduke
Francis Ferdinand.

Austria-Hungary
declared war on Serbia, setting into train the Great War as the other powers in
Europe met their complex, and sometimes secret, defense treaty obligations.

It
was on this day...

1919
World War One Ends, Keynes Predicts Dire Consequences For
The Sanctions Against Germany

John Maynard Keynes
made one of the most foresightful predictions in modern economic history, on this
day, when he predicted that the punitive sanctions meted out to Germany as WW1
ends would lead to problems later on for Central Europe.

The
German economy would eventually collapse with the country unable to pay the imposed
war reparations.

Germany
was being bled dry by the allies and, in 1923, France and Belgium invaded the
industrial Ruhr region as a means of forcing payment.

Hitler
would use this dissatisfaction at home to gain power and ultimately lead to World
War 2.